PMLA case: Court summons Vivo's acting CEO after ED filed supplementary charge sheet

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The Chief Financial Officer (CFO) and a tax consultant, along with Vivo India's Acting CEO Hong Xuquan, also known as Terry, were called by Delhi's Patiala House court recently. A charge sheet (supplemental prosecution complaint) was issued by the Directorate of Enforcement (ED) against two companies and three people. The issue concerns the purported embezzlement of INR 20241 crores from outside India.

CFO Harinder Dahiya, Tax Consultant Hemant Kumar, Hong Xuquan, also known as Terry, Advisefox India LLP, and Reyansh Consulting and Investment Group are the targets of the supplemental prosecution charge filed by the ED. December 2023 saw the arrest of these three defendants. On December 30, 2023, the trial court discharged them after they had contested their arrest. The order was contested by the ED in front of the High Court.

Special judge Kiran Gupta issued summons to all accused persons and directed them to appear before the court on August 28. "There is sufficient material available on record and grounds exist for proceeding further in the matter qua the accused persons as named in the supplementary prosecution complaint in addition to the already 48 summoned accused persons," the court said in the order passed on May 20.

On December 20, 2023, the court granted the prosecution's primary complaint recognition. The supplementary prosecution complaint alleges that these accused individuals and other co-accused individuals, who were already summoned on December 20, 2023, were instrumental in the seizure and diversion of Proceed of Crime (PoC) totalling Rs 20,241 crores from India.

According to the ED, accused Hong Xuquan, also known as Terry, has been managing all of Vivo India's activities as acting CEO and has maintained constant communication with the company's present CEO. According to the ED, he has played a significant role in the PoC acquisition by hiding Vivo China's genuine beneficial ownership of SDCs and India's true beneficial ownership of Vivo India.

"He actively assisted Vivo India and Vivo China in the process and activities connected with the acquisition, possession, transfer and projection of PoC as untainted property as defined under Section 3 read with Section 70 of PMLA," the ED alleged. It is further stated that accused Hemant Kumar Munjal is the Tax Consultant, who was well aware that Vivo China is the ultimate beneficial owner of Vivo India.

According to the ED, Munjal is also the beneficial owner of Advisefox India LLP and Reyansh Consulting Investment Group. Vivo India was aided in the syphoning of the PoC outside of India by these firms and M/S Vigour Mobil India Pvt. Ltd., which is also an accused party in the PC. According to the agency, accused Harinder Dahiya has been employed by Vivo India since 2020 as both a director and the chief financial officer. He is credited with helping the company continuously amass the profits of crime, which as of March 31, 2021, totaled Rs 20,241 crore.

(With Inputs from ANI)